New Delhi, Apr 2 (KNN) Through initial public offerings, small and medium enterprises raised funds of worth Rs 2,155 crore in 2017-18 which is more than double as compared to last fiscal year.

According to offer documents, funds through IPOs were raised for the purpose of business expansion plans, working capital requirements and other general corporate purposes.

The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.

In 2017-18, a total of 148 companies got listed with initial Public Offers (IPOs) which raised funds of worth Rs 2,155 crore, out of which 64 companies made a high of upper circuit limit at 20 percent on the first day of listing in comparison of 2016-17, as 80 firms were able to raise Rs 810 crore through IPOs.

In the year 2015-16, around 46 firms entered on SME platform and raised Rs 303 crore. All these companies who participated in SME platform to raise funds through IPOs are listed on SME platform of BSE and NSE.

Pantomath Group Managing Director Mahavir Lunawat said that with the passage of time SME Capital Markets have grown a lot and lent a great confidence to growing entrepreneurs.

Further, Growing SME Capital Markets have addressed various issues and myth, he added.

Also he said that with the companies listed on SME platform, investors’ base got expanded and companies now have become more established.

Moreover in direction of attracting investment with increase in number of SME stocks and returns he said “the just concluded fiscal witnessed phenomenal figures in terms of funds raised and the number of listings, we expect to witness the trend to continue in the near future.”

In geographical terms, Gujarat being on the top of the list has maximum 50 firms listed on SME bourses followed by Maharashtra (43), Madhya Pradesh (13), Delhi (10) and Telangana and West Bengal (5 each).

Also in comparison to preceding fiscal year, average issue size has also increased to Rs 14.56 crore from 10.12 crore.

With this tremendous growth, not only institutional investors including banks and mutual funds have showed interest in SMEs public offers but also investors in terms of subscriptions with 9 IPOs getting subscribed more than 100 times the issue size, reflecting growing interest and faith of investors in SME capital markets.

The companies which got listed in the past fiscal are from sectors such as manufacturing, textiles, engineering, agriculture, chemicals, food processing, media and entertainment, construction and finance and investments based out of more than 60 cities covering remotest areas of India.

Since then, 370 companies have got listed on the platform and raised close to Rs 4,100 crore with a market capitalization of Rs 33,000 crore. (With Inputs from a media report) (KNN/YV)